Tennessee unemployment rate for May dropped one-tenth of a point to 10.4%. May's rate last year was 10.7 percent. The national unemployment rate for May 2010 was 9.7 percent, down 0.2 percentage point from the April rate of 9.9 percent.

Commissioner of Labor & Workforce Development James Neeley said, “Gains from the Census jobs aside, the modest employment growth in Tennessee continues to be positive. The state’s unemployment rate is trending downward, and we are experiencing slightly higher monthly job growth than the national average.”

According to the Business Survey, federal government jobs increased by 10,100 due to the hiring of temporary Census workers. The Leisure and Hospitality sector; added 7,200 jobs and Professional and Business Services sector increased by 5,200. Major employment decreases occurred in Educational and Health Services, down by 3,800 and State Government Educational Services declined by 1,600 jobs.

Year-over-year increases occurred in federal government employees, up by 10,600; Administrative, Support, and Waste Services gained 9,800; and Retail Trade was up by 5,400. Year-over-year decreases occurred in Transportation and Warehousing, down by 7,200; Durable Goods Manufacturing lost 6,600; and Mining and Construction decreased by 6,500.

City and County employment data is scheduled for release next Thursday.